Uneven Performance

The S&P 500 hit its 51^st record close yesterday, although the internals weren’t as hot as the index. Five sectors were down, but Consumer Discretionary (XLY) and Financials (XLF) set the pace.

Heat Map & New Highs

Tesla (TSLA) continues its scorched earth move after reports that Elon Musk spent the entire weekend at Mar-a-Lago. 

Financials were a green patchwork, and Industrials (XLI) was also a quilt of green.

I continue to marvel at the up volume on the NASDAQ Composite. It feels like a gold rush scenario. There’s hot, and then there’s sizzling - the NASDAQ is sizzling hot.

Market Breadth	NYSE	NASDAQ
Advancers	1,578	2,470
Decliners	1,217	1,804
New Highs	427	571
New Lows	29	109
Up Volume	2.34 billion	5.47 billion
Down Volume	1.44 billion	2.14 billion

New Highs & Lows

353 new highs versus 22 new lows.

Small-cap breadth remains convincing.

Outside Influences

There is much economic data to contend with this week, beginning this morning.

These markets are demanding. On the one hand, you feel like you missed it, but on the other hand, you feel like it’s a great chance to make big bucks.

Be careful of getting whipsawed out of good stocks on negative initial reactions to good news. 

Today’s Session

The past week has been blistering for the market and, at some point, gains need to be consolidated.

Equity positioning has surged to an 11-year high, and the boo-birds are beginning to come out to warn of impending disaster.

I read and listen to these opinions because there are always slivers of information and history worth knowing, but I also understand most of these folks were on the wrong side of the election and most are bitter.

We must keep doing the work.

Right now, there is an emotional aspect of the rally that puts greater emphasis on behavioral analysis than normal. It means fundamentals matter even more.

Comments

Guess who just lost a truckload in QRVO out of the blue? On a revenue beat? Yep, retired lil ol me. How long to recover? My losers NEVER recover. Sad but true. T in Tx Tim in Texas on 11/12/2024 11:19:04 AM

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